(Yicai) Sept. 26 -- Shares of OMH Science Group jumped initially after China's biggest smart logistics equipment provider said its unit has agreed to undertake an intelligent warehousing project worth MYR2 billion (USD470 million), expanding its relevant equipment and services in Southeast Asia.

OMH [SHE: 300486] closed down 6.28 percent to CNY23.89 (USD3.35) a share in Shenzhen today, dragged down by the broad market’s profit taking activities,  despite rising by as much as 6.5 percent at the open, as Shenzhen's Nasdaq-style ChiNext Board Index dropped 2.6 percent today. 

OMH Shandong is set to be responsible for the engineering, procurement, supply, construction, and commissioning of Malaysian property developer PTT Synergy Group’s intelligent warehousing development project, according to a deal it inked with PTTSG's and Chinese robotics product supplier AUBO Robotics Shandong, OMH Shandong’s Taiyuan-based parent company announced late yesterday. 

PTTSG plans to develop a series of automated warehousing facilities in Malaysia over the next five years, with a total capacity of around 2 million pallet positions, OMH noted.

OMH Shandong will also serve as the main system integrator for the project, provide the client with complete equipment design, stacker crane supply, and software and control systems, and will be responsible for the installation and commissioning of related hardware and software facilities, the parent company noted, adding that AUBO will supply handling and palletizing robots and oversee the installation and commissioning of robotics gear.

AUBO's revenue from robots and services will likely account for about 8 to 10 percent of the MYR2 billion, OMH said. PTTSG will make an advance payment and design fee of no less than 30 percent of the contract value when construction work starts, it noted.

OMH's intelligent warehousing business accounted for around 79 percent of its total revenue in the first half of this year. Its smart logistics warehousing system clients in Southeast Asia include Malaysia's largest beverage company Fraser & Neave, local smart warehousing developer FMM House, and Michelin. 

The geopolitical and trade risks have prompted OMH to expand its business into the Association of Southeast Asian Nations recently, OMH raised its goal for income from the region to make up 35 percent of its total this year, according to its annual financial report. It will also set up its second overseas production base in the region.
Editor: Martin Kadiev